A BROKER upgrade helped BT shares storm ahead yesterday, but the wider market failed to make headway in lacklustre trading.
The FTSE 100 Index dipped 19.9 points to close at 4442, with little direction provided by a poor opening on Wall Street as US investors weighed up recent signs of economic recovery with worries over US inflation.
In London, banks and miners dropped into the red after strong performances earlier this week.
Telecoms group BT enjoyed a good session, rising more than four per cent thanks to the Bank of America upgrade, which saw it raise its price target on the company and issue a buy note.
BT’s ascent of the risers’ board came as a welcome boost to shareholders after problems at its global services arm hurt its share value.
BoA said it was the time for investors to return to the stock following a dire period in the firm’s history, which had seen the stock tumble to record lows.
Shares rose as a result by 3.8p to 96.8p.
The firm was joined on the risers’ board by pharmaceuticals stocks as GlaxoSmithKline said it had started to develop a new swine flu vaccine. The shares added 57p to 1115.5p, or five per cent.
Meanwhile, a UBS target price rise on Astra- Zeneca saw the company’s shares rise more than four per cent or 112p to 2629p.
One of the most closely watched stocks of the session was Barclays after US investment group BlackRock announced it was buying Barclays Global Investors for a total of $13.5bn (£8.2bn).
Barclays said it will be one of the world’s bestcapitalised banks, but with no competing offer likely to emerge shares retreated 12.5p to 292p. In contrast, Royal Bank of Scotland added 0.2p to 39.9p.
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules here